Slide 1: Together, we are NWF
Together, we are NWF NWF Group plc Final results to May 2022
Slide 2: An experienced and capable team
Group overview Leadership team 2 An experienced and capable team Richard Whiting Chris Belsham Chief Executive Group Finance Director Key skills Experience Key skills Experience • Strategy and leadership Joined in 2007. Previously group finance • Finance Joined as Finance Director in 2017. • Sales a
Slide 3: NWF is a specialist distributor of fuel, food and feed across the UK
Group overview Key highlights 3 NWF is a specialist distributor of fuel, food and feed across the UK Summary Fuels Food Feeds • Strong track record of Supplying fuel to commercial The leading North West Delivering nutritional advice delivering increased and domestic customers ambient grocery consoli
Slide 4: Record results, significantly ahead of initial expectations
Group overview Results summary 4 Record results, significantly ahead of initial expectations* Revenue Headline operating profit¹ Headline profit before tax¹ £878.6m £21.8m £20.9m +30.0% +69.0% +75.6% 22 £878.6m 22 £21.8m 22 £20.9m 21 £675.6m 21 £12.9m 21 £11.9m 20 £687.5m 20 £14.3m 20 £13.2m Headlin
Slide 5: Fuels operating highlights
Fuels Operating highlights 5 Significant Fuels outperformance • Significant outperformance from trading in Revenue £621.1m very volatile markets with supply constraints: +38.7% • One-off gains highlighted by 2.6p per litre net profit (2021: 1.4p per litre) 22 621.1 • Oil supply issues from September
Slide 6: Food operating highlights
Food Operating highlights 6 Solid performance Food improvement • Performance delivered through increased Revenue efficiency • Good warehouse utilisation: £62.6m +14.2% • Pressure on customers’ stock levels at 22 62.6 Christmas 21 54.8 • Effective management of inflationary cost 20 48.3 increases • C
Slide 7: Feeds operating highlights
Feeds Operating highlights 7 Strong second half Feeds recovery • Strong H2 after disappointing first half Revenue • Lower volumes driven by the market, retail in the North and merchant acquired in the £194.9m +12.7% South 22 194.9 • Unprecedented increase in commodity prices, significant impact of U
Slide 8: Financial review
Financial review NWF GROUP PLC FINAL RESULTS TO MAY 2022
Slide 9: Income statement summary
Group overview Financial review 9 Income statement summary May 2022 May 2021 • Revenue increased by £203.0 million (30%): £m £m • £227.0 million from higher commodity prices and Revenue product mix movements Fuels 621.1 447.8 Offset by: • £24.0 million from lower volumes Food 62.6 54.8 (Fuels and Fe
Slide 10: Income statement summary
Group overview Financial review 10 Income statement summary May 2022 May 2021 • Headline PBT of £20.9 million £m £m • Bank interest reduced to £0.4 million Operating profit 13.2 12.1 • IFRS 16 interest of £0.5 million (2021: Finance costs (1.2) (1.3) £0.5 million) Headline profit before tax* 20.9 11
Slide 11: Balance sheet summary
Group overview Financial review 11 Balance sheet summary May 2022 May 2021 £m £m • Fixed assets decreased as a result of the impairment of goodwill and fixed assets in Fixed assets 68.1 78.2 Feeds Right of use assets 27.5 25.4 • Higher net working capital as higher commodity costs required additiona
Slide 12: Pension summary
Group overview Financial review 12 Pension summary May 2022 May 2021 25.0 £m £m 6.4 10.4 Assets 39.7 45.1 20.0 14.9 2.2 Liabilities (49.0) (60.0) 15.0 0.6 £m Deficit (9.3) (14.9) 9.3 10.0 Related deferred tax asset 2.3 3.7 5.0 Net pension liability (7.0) (11.2) Discount rate 3.45% 2.00% - Inflation
Slide 13: Cash flow summary
Group overview Financial review 13 Cash flow summary May 2022 May 2021 • Headline EBITDA* of £26.6 million (2021: £17.8 million) £m £m • Working capital movement as a result of increased costs of Operating profit 13.2 12.1 commodities in Feeds Depreciation and amortisation 14.0 12.9 • Net capital ex
Slide 14: Net debt summary
Group overview Financial review 14 Net debt summary 35 • Facilities of £65 million with NatWest until October 2023 (0.7) 35.6 (3.7) 30 • Net cash of £9.0 million at May 2022 with substantial (3.5) 25 facility and covenant headroom (1.8) (3.2) Facility Drawn 20 0.8 (8.8) £m £m 15 £m 9.0 Facility 10 5
Slide 15: A clear development strategy – significant opportunities
Group overview Development strategy 15 A clear development strategy – significant opportunities Summary Fuels Food Feeds • Diversified source of • Consolidate a highly fragmented • Optimise the customer mix • Utilise national operations earnings market platform • Optimise storage and • Cash-generati
Slide 16: UK Fuel market
Fuels Development strategy 16 UK Fuel market • Fragmented market for oil distribution: UK Fuel Market (35 billion litres) • Top 10 players only 25%, over 150 small players • NWF No. 3 with 2% market share Certas (DCC) • Fuels market stable Watsons (WFL) • Consolidation opportunities NWF • NWF Fuel d
Slide 17: Proven Acquisition process
Fuels Development strategy 17 Proven Acquisition process • Targeting oil distribution businesses in the UK • Clear valuation and pricing strategy • Effective transaction process • A range of ways to deliver value: • Integrate into existing depot infrastructure to realise cost synergies • Expand geog
Slide 18: Delivering our ESG framework
Group overview ESG framework 18 Delivering our ESG framework During FY22, the Group has further developed its commitment to delivering long- term sustainable value by defining our 2040 ambitions, including a net zero carbon emissions target. Create a culture Invest in of safety our people Key activi
Slide 19: The NWF proposition and investment case
Group overview Summary and outlook 19 The NWF proposition and investment case Strong Growth Asset management opportunities backing team Solid track record Consolidate and Strong balance with ambition optimise sheet 5 1 £213.9m total assets completed Fuels clear strategy acquisitions Focus on return
Slide 20: Record results and increasing opportunities
Group overview Summary and outlook 20 Record results and increasing opportunities Record 2022 • Trading capability delivered outperformance in Fuels • Food demonstrating strong return on investment • Feeds recovery in second half • NWF again demonstrated great resilience Currently trading in line wi
Slide 21: Q&A
Group overview 21 Q&A Richard Whiting Chris Belsham Chief Executive Group Finance Director NWF GROUP PLC FINAL RESULTS TO MAY 2022
Slide 22: Additional information
Group overview Appendix 22 Additional information • Analyst coverage and consensus forecasts • Business overview • Locations • Organisation • Main site photo • Group financial performance • Divisional track record • Additional market data NWF GROUP PLC FINAL RESULTS TO MAY 2022
Slide 23: Analyst coverage and consensus forecasts
Group overview Analyst coverage and consensus forecasts 23 Actual Consensus forecasts Analysts 2022 2022 2023 2024 Peel Hunt* Charles Hall Revenue £878.6m £889.0m £893.1m £927.5m Panmure Adrian Gordon Kearsey Headline operating £21.8m £21.4m £12.9m £13.1m Shore Capital Akhil Patel profit * Corporate
Slide 24: Fuels business overview: key figures
Fuels Business overview 24 Key figures NWF Fuels is a leading distributor of fuel oil and fuel cards delivering over 660 million litres across the UK to 109,000 customers. It is one of the largest authorised distributors of Texaco and is a major customer of other fuel suppliers including Shell and J
Slide 25: Food business overview: key figures
Food Business overview 25 Key figures Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over 1,000,000ft2 of warehousing and significant distribution assets. It works with over 200 customers including Arla and Typhoo. 118,000 127 pallet spaces trucks
Slide 26: Feeds business overview: key figures
Feeds Business overview 26 Key figures NWF Agriculture has grown to be a leading national supplier of ruminant animal feed to 4,325 customers in the UK, feeding 1 in 6 dairy cows in Britain. It operates from sites in Cumbria, Lancashire, Cheshire and Devon. 528,000 45 tonnes trucks 224 17 people tra
Slide 27: Business locations
Group overview Business locations 27 Feeds Aspatria Longtown Wardle* Wixland Food Wardle* Fuels Ammanford Babbinswood Crewe Bangor Boston Burnley Burwell Droitwich Dyserth Fishers Pond Great Yarmouth Home Counties Kenilworth Kirkby Lonsdale Long Marston Mansfield Preston Redruth Southport Staffordsh
Slide 28: Organisation
Group overview Organisation 28 Non-Executives Chief Executive Chairman: Philip Acton Richard Whiting David Downie Richard Armitage Dawn Moore Group Finance Company Director Secretary Chris Belsham Rob Andrew Fuels Food Feeds Richard Huxley Angela Carus Andrew Downie 338 employees 724 employees 224 e
Slide 29: Wardle – main operating site
Group overview Wardle – main operating site 29 NWF GROUP PLC FINAL RESULTS TO MAY 2022
Slide 30: Track record
Group overview Track record 30 Revenue Headline PBT 1,000 25 878.6 900 20.9 800 687.5 20 671.3 675.6 700 611.0 600 555.8 15 13.2 465.9 11.9 500 £m £m 10.2 9.7 400 10 8.3 8.5 300 200 5 100 0 0 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Headline EPS Dividend 40 35.0 8 7.5 7.
Slide 31: Divisional track record
Group overview Divisional track record 31 Fuels Food 700 20 70 3.0 18 600 60 16 2.5 Operating profit £m 500 14 50 Operating profit £m 2.0 12 Revenue £m Revenue £m 400 40 10 1.5 300 30 8 6 1.0 200 20 4 100 10 0.5 2 0 0 0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 32: Fuels additional market data
Fuels Group overview 32 Fuels additional market data Oil prices – Brent crude ($ per barrel) Oil Market Journal 140 135 130 125 120 115 110 105 100 95 90 85 80 75 70 $ 65 60 55 50 45 40 35 30 25 20 15 10 5 0 NWF GROUP PLC FINAL RESULTS TO MAY 2022
Slide 33: Feeds additional market data
Feeds Group overview 33 Feeds additional market data GB market 2017 2018 2019 2020 2021 2022 Milk (litres) 11.8bn 12.4bn 12.6bn 12.5bn 12.6bn 12.5bn UK dairy herd 1.9m 1.9m 1.9m 1.9m 1.9m 1.9m Ruminant 4.8m 5.1m 5.1m 4.8m 5.0m 4.8m feed market (tonnes) NWF (tonnes) 589k 589k 591k 625k 575k 528k Mark
Slide 34: A great big thank you to all our colleagues
From top left, left to right: Dawn Davies, Andreea Vinatoru, Lucy Jenkin, Andrea Mier, Karolina Banaszek, Liz Barratt, Adam Lysik, Dan Busby, Mark Ellis, Lilly Evans, Craig Davies, John Davies, Sam Bradley, Katie Welsh, Angel Asenov, Dave Snelson, Anna Meakin and Missi Nyarko. A great big thank you